Asset Depletion Mortgage Texas: You have the money. You just don't have a paycheck.
Asset depletion, asset dissipation, and asset utilization are industry labels for deriving qualifying income from eligible accumulated assets under agency- or investor-specific rules.
Asset-based qualifying is not one universal mortgage program or formula. Fannie Mae, Freddie Mac, and non-agency investors apply different asset, ownership, access, occupancy, transaction, deduction, and calculation rules. I compare the written paths that may fit a Texas borrower's facts; the lender's adopted guideline and underwriting decision control eligibility.
Asset depletion mortgage in Texas overview
Decades of building wealth can leave a borrower with substantial retirement accounts, brokerage portfolios, or savings but limited traditional employment income. Whether those assets can support mortgage qualifying depends on the specific written rule and the rest of the file.
The broad concept is to derive a monthly qualifying-income amount from assets that satisfy a specific written rule. The lender first determines which assets are eligible and documented, then applies that rule's required deductions and divisor. The result is used in underwriting; it is not cash paid to the borrower and does not by itself establish approval.
You will also see the strategy called an asset depletion loan, asset utilization mortgage, asset dissipation loan, or accumulated assets as income. Those labels are not interchangeable promises. Fannie Mae's employment-related asset rule, Freddie Mac's assets-as-income rule, and lender-specific non-agency methods have materially different boundaries.
The useful comparison is not simply which method produces the largest number. Occupancy, transaction type, loan-to-value limits, ownership, access, documentation, reserves, pricing, fees, and the lender's current adoption of a rule all matter.
Key Details
2026 Fannie Mae, Freddie Mac, and non-agency rules
Read the status first. These paths do not share one asset list, transaction rule, leverage limit, or divisor. Freddie Mac also has a current rule-version transition, so lender adoption must be confirmed before using either Freddie calculation.
Status: Current employment-related assets method.
Fits: Purchase or limited cash-out refinance; principal residence or second home; units as permitted by occupancy type.
Maximum leverage: 70% LTV, CLTV, and HCLTV, or 80% when the owner of the assets being used to qualify is at least 62 and the ownership requirements are met.
Calculation: Subtract applicable distribution penalties and funds used for down payment, closing costs, and required reserves, then divide net documented assets by the loan's amortization term.
Status: Current for sellers that have not early-adopted Bulletin 2026-10.
Fits: One- or two-unit primary residence or second home; purchase, no-cash-out refinance, or Enhanced Relief Refinance.
Maximum leverage: Generally a maximum 80% LTV, TLTV, and HTLTV; Enhanced Relief uses the maximum ratios in Section 4304.3.
Calculation: Under this current non-adopter rule, subtract specified funds to close, gift or borrowed funds, and pledged or encumbered amounts, then divide net eligible assets by 240.
Status: Sellers may implement the complete package early; it is not in force for every Freddie seller today. It becomes mandatory for mortgages with settlement dates on or after February 3, 2027.
Fits: Under the early-adopted or mandatory complete Bulletin package: an Accept Mortgage, all occupancy types, and an eligible purchase or no-cash-out refinance.
Maximum leverage: Under that complete Bulletin package, applicable Section 4203.1 LTV limits replace the current 80% ceiling.
Calculation: Under that complete Bulletin package, require at least $30,000 in net eligible assets and its required deductions, documentation, seasoning, and account tests, then use the 180-month divisor. Early adoption must be confirmed for the specific lender and file.
Status: Lender-specific non-agency path; no universal formula.
Fits: Occupancy, property, transaction, ownership, access, and asset eligibility vary by investor.
Maximum leverage: Investor-specific.
Calculation: Divisor, deductions, eligible assets, documentation, reserves, pricing, and underwriting are investor-specific.
Fannie Mae B3-3.4-06. The current employment-related asset method applies to a purchase or limited cash-out refinance of a principal residence or second home. Its maximum LTV, CLTV, and HCLTV is 70%, or 80% when the owner of the assets being used to qualify is at least 62 and the ownership requirements are met. The lender subtracts applicable distribution penalties and funds needed for down payment, closing costs, and reserves, then divides net documented eligible assets by the loan's amortization term in months. Checking and savings are generally ineligible unless sourced from an eligible employment-related asset.
Fannie's published calculation example: a $500,000 IRA, less an assumed 10% distribution penalty and $100,000 needed for closing, leaves $350,000 in net documented assets. Dividing by a 360-month amortization term produces $972.22 in monthly qualifying income. That example illustrates one agency method; it is not a promise that the account, transaction, or borrower qualifies.
Freddie rule-version checkpoint: Section 5307.1 for sellers that have not adopted Bulletin 2026-10. For a seller that has not early-adopted the Bulletin, the currently effective requirements are limited to a one- or two-unit primary residence or second home, a purchase, no-cash-out refinance, or Enhanced Relief Refinance, and generally a maximum 80% LTV/TLTV/HTLTV. The method subtracts specified funds needed to close, gift or borrowed funds, and pledged or encumbered amounts from eligible documented assets, then divides net eligible assets by 240. Ownership, access, age, and documentation requirements differ by asset category.
Freddie Mac Bulletin 2026-10. Sellers may implement the accumulated-assets update early; it becomes mandatory for mortgages with settlement dates on or after February 3, 2027. An adopting seller must follow the Bulletin's complete package, including an Accept Mortgage, at least $30,000 in net eligible assets, all occupancy types, the applicable Section 4203.1 LTV limits, the 180-month divisor, removal of the current depository-account and securities age restriction, 12-month seasoning unless the account was funded from eligible sources, and account-value tests for changes over that period. Early adoption must be confirmed for the specific lender and file.
Lender-specific non-agency methods. There is no universal non-agency divisor, haircut, eligible-asset list, age rule, occupancy rule, or refinance rule. Any comparison must use the investor's current written guideline and the lender's overlays, pricing, and underwriting.
Trust income is a separate analysis. Fannie Mae B3-3.4-16 requires documentation of the trust, receipt, history, and continuance according to the payment type. Beneficiary status by itself does not establish that trust assets qualify under an asset-depletion method.
Retirement distributions are also a separate analysis. An actual Social Security, pension, annuity, IRA, or 401(k) payment stream follows source-specific income rules. Asset depletion instead derives income from eligible net assets, and the same balance cannot be counted twice.
Rule versions reviewed
Source dates and adoption status reviewed September 4, 2026. The lender's adopted guideline and the complete documented file control.
- Fannie Mae B3-3.4-06 (Selling Guide page dated 03/04/2026): current employment-related assets as qualifying income method. The source date does not mean every lender overlay is identical.
- Freddie Mac Section 5307.1: the 240-month method remains current where the seller has not early-adopted Bulletin 2026-10. It is not a retired rule.
- Freddie Mac Bulletin 2026-10: sellers may implement the accumulated-assets update early, but it is not in force for every Freddie seller today. It becomes mandatory for mortgages with settlement dates on or after February 3, 2027. An adopting seller must use the complete package, not the 180-month divisor alone.
- Non-agency asset-depletion or asset-utilization methods: remain lender- or investor-specific. This log does not create a universal formula.
How I structure asset depletion for high-net-worth borrowers
I start with a high-level asset inventory, identify the written agency and lender-specific rules that may apply, and compare their eligibility, documentation, calculation, reserve, and cost implications. That review can identify a plausible path, but it is not an approval or commitment to lend.
If documented pension, Social Security, trust, interest, dividend, or other income supports a cleaner conventional structure, I will compare it. The goal is a supportable file under the lender's adopted rules, not the most favorable-looking divisor in isolation.
Primary sources and review basis
The agency and advertising statements on this page are based on the linked primary sources. Freddie Mac early adoption and non-agency investor rules must be confirmed for the specific lender and file.
Fannie Mae B3-3.4-06: Employment-Related Assets as Qualifying Income
Freddie Mac Section 5307.1: Assets as a Basis for Repayment of Obligations
Freddie Mac Bulletin 2026-10: Accumulated Assets as Income
Fannie Mae B3-3.4-16: Trust Income
GovInfo: 12 CFR 1014.3, Regulation N Prohibited Representations
Questions I Get
Do I have to sell my investments?
Not necessarily. The cited agency rules may derive qualifying income from eligible assets without requiring every investment to be sold, but ownership, access, documentation, encumbrances, funds needed for closing and reserves, and the lender's adopted rule all matter. Underwriting determines whether an asset can be counted.
Do retirement accounts count?
Sometimes. Fannie Mae's rule is limited to eligible employment-related assets and requires documented access; applicable distribution penalties are deducted. Freddie Mac applies asset-type-specific ownership and access rules. Non-agency treatment is lender-specific, so there is no universal retirement-account discount.
Is asset dissipation the same as asset depletion?
They are commonly used as labels for the broad strategy of deriving qualifying income from eligible assets, but they do not name one standardized program. Fannie Mae, Freddie Mac, and non-agency investors use materially different eligibility, asset, transaction, and calculation rules.
Conventional or non-QM?
Both agency and non-agency paths exist. Fannie Mae and Freddie Mac publish separate conventional rules for deriving income from eligible assets. Non-agency investors may publish different methods. The label alone does not establish which path, if any, fits a file.
What is an asset depletion mortgage?
Asset depletion mortgage is an industry label for deriving a qualifying-income amount from eligible accumulated assets. It is not one universal loan program or formula. The governing agency or investor rule determines eligible assets, deductions, transaction limits, documentation, and the calculation.
How does an asset depletion mortgage work in Texas?
Texas does not create one asset-depletion formula. The applicable agency or investor guideline controls asset eligibility and calculation, while Texas property and homestead rules may add transaction-specific considerations. The lender's adopted guideline and underwriting decision control the result.
Is there an asset depletion mortgage calculator I can use?
No single calculator applies across programs. Fannie Mae divides net documented eligible assets by the loan's amortization term. For a Freddie seller that has not early-adopted Bulletin 2026-10, the currently effective Section 5307.1 method uses 240 months; an adopting seller uses the Bulletin's 180-month method. The update is mandatory for settlements on or after February 3, 2027. Non-agency methods are investor-specific. Any calculation is an estimate, not an approval or offer.
Who qualifies for an asset depletion loan?
No borrower category qualifies automatically. The transaction, occupancy, loan-to-value ratio, asset ownership, access, documentation, reserves, obligations, credit, and lender's adopted rule must all fit. Trust-beneficiary status alone does not establish asset eligibility; trust income follows separate documentation, history, receipt, and continuance rules.
Can I refinance with an asset depletion mortgage?
Possibly, but refinance eligibility is rule-specific. Fannie Mae's cited employment-related asset method permits limited cash-out refinances. For a Freddie seller that has not adopted Bulletin 2026-10, the currently effective requirements list no-cash-out and Enhanced Relief refinances; an adopting seller follows the Bulletin's no-cash-out refinance rule. Non-agency rules vary. Cash-out and Texas homestead transactions require a separate guideline and compliance review.
How do lenders calculate asset depletion income?
The calculation depends on the governing rule. Fannie Mae subtracts applicable distribution penalties and funds needed for down payment, closing costs, and reserves from eligible employment-related assets, then divides net documented assets by the loan's amortization term. For a Freddie seller that has not adopted Bulletin 2026-10, the currently effective method subtracts specified closing, gift, borrowed, pledged, and encumbered amounts and divides by 240. An adopting seller uses the Bulletin's 180-month method and complete eligibility package. Non-agency calculations require the current investor guide.
Assets but limited traditional income?
Send me a high-level asset summary. I can compare applicable written guidelines and lender overlays; eligibility and underwriting determine the result.